Beauty pageant stock’s overvaluation concerns

The once-dazzling rally of Miss Grand International Plc (MGI), a beauty pageant organiser, appears to be losing its shimmer as concerns loom large over its increasingly stretched valuation.

Since its inception in mid-December at 4.95 baht apiece, the stock catapulted by over 900%, ranking as the second-best performer among new listings in the Asia Pacific region over the past three months. However, with the stock now trading at 65 times its 12-month trailing earnings, a sharp contrast to the benchmark the Thailand Stock Exchange (SET) Index’s 17, analysts warn of a looming correction.

The bull run prompted the SET to intervene, pausing trading and mandating cash prepayments for potential buyers, yet the enthusiasm seemed undeterred as shares surged through Tuesday, Wednesday, and Thursday. Thakol Banjongruck, an analyst at Yuanta Securities…